Iran’s parliament has approved Seyed Ali Madanizadeh as the country’s new Minister of Economic Affairs and Finance(Economy Minister), tasked with addressing the nation’s mounting economic challenges. Madanizadeh, 43, received 171 votes in favor, 61 against, and eight abstentions from the lawmakers present in the 290-seat parliament. He replaces Abdolnaser Hemmati, who was dismissed following a parliamentary vote of no confidence on March 2 for failing to address the economic woes.
Madanizadeh’s appointment comes at a critical time, with Iran’s economy struggling under the weight of US sanctions and internal mismanagement. The country has been plagued by persistent double-digit inflation and surging consumer prices, exacerbated by the “maximum pressure” sanctions campaign revived by US President Donald Trump. The economic crisis has been further complicated by a dramatic escalation in regional conflict with Israel, which has resulted in significant loss of life and retaliatory strikes.
As economy minister, Madanizadeh will face unprecedented challenges, including curbing the budget deficit and reforming the banking sector. His academic background and practical policy experience position him as a credible agent for reform. In his proposal submitted to parliament, Madanizadeh calls for a shift from import substitution to export promotion, a significant departure from Iran’s historically insular economic model.
The confirmation of Madanizadeh as Iran’s new economy minister presents a rare opportunity for the country to confront its deep-rooted economic crises with evidence-based, technocratic leadership. However, the intensifying conflict with Israel will likely hinder his ability to pursue this strategy in the short term.
Madanizadeh’s priorities will include introducing better fiscal and monetary policies to lower inflation and control the country’s volatile stock markets. The Iranian government’s heavy debts, estimated at $400 billion owed to the banking system, will also need to be addressed. With his confirmation, Madanizadeh has a chance to implement meaningful reforms and stabilize Iran’s economy, but the path ahead will be fraught with challenges.